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  1. #1
    Join Date
    Mar 2019

    Default Recurring Late Charges on a Delinquent HOA Assessment

    My question involves real estate located in the State of: CA

    I was delinquent on one assessment because my bank failed to send the payment to the managing agent of the HOA. This was 2 years ago and therefore, today, the account has a significant amount of late charges and interest.

    A significant component of the balance is recurring late charges every month!

    I understand I have to pay interest every month but why pay late charges on late charges?

    The Board refuses to remove monthly recurring late charges (with malice) because of a neighborhood feud.

    I do not want to go to small claims court and instead hire an attorney to sue the HOA and my questions are the following:

    1- Will I prevail in this suit?
    2- If I prevail, who pays my attorney fees?

  2. #2
    Join Date
    Oct 2016

    Default Re: Recurring Late Charges on One Delinquent Assessment

    Quote Quoting Civil Code 5650. Debt of Owner; Late Charges and Interest.
    (a) A regular or special assessment and any late charges, reasonable fees and costs of collection, reasonable attorney’s fees, if any, and interest, if any, as determined in accordance with subdivision (b), shall be a debt of the owner of the separate interest at the time the assessment or other sums are levied. [Old: Civ. Code 1367.1(a)]

    (b) Regular and special assessments levied pursuant to the governing documents are delinquent 15 days after they become due, unless the declaration provides a longer time period, in which case the longer time period shall apply. If an assessment is delinquent, the association may recover all of the following: [Old: Civ. Code 1366(e)]

    (1) Reasonable costs incurred in collecting the delinquent assessment, including reasonable attorney’s fees.

    (2) A late charge not exceeding 10 percent of the delinquent assessment or ten dollars ($10), whichever is greater, unless the declaration specifies a late charge in a smaller amount, in which case any late charge imposed shall not exceed the amount specified in the declaration.

    (3) Interest on all sums imposed in accordance with this section, including the delinquent assessments, reasonable fees and costs of collection, and reasonable attorney’s fees, at an annual interest rate not to exceed 12 percent, commencing 30 days after the assessment becomes due, unless the declaration specifies the recovery of interest at a rate of a lesser amount, in which case the lesser rate of interest shall apply.

    (c) Associations are hereby exempted from interest-rate limitations imposed by Article XV of the California Constitution, subject to the limitations of this section. [Old: Civ. Code 1366(f)]
    It seems that you might well previal because of (b)(2) of the law assuming the fee we are talking about is greater than $10.00.

    You will probably pay you own lawyer.

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